Capital investment was up by 20% through September yoy, matching the 21% growth recorded for the same period last year. These are real growth increases, adjusted for inflation, according to the State Statistics Service. Capex highlights for January-September 2018: industrial investment up 25%; transportation – largely rail – up 43%; and extraction – oil, gas and iron mining – up 51%. Of investment, 73% was self-financed by companies, with bank loans accounting for only 7%. Dragon Capital writes: “Imposition of a 30-day martial law in selected regions following an escalation of tensions with Russia in the Sea of Azov, may hit business confidence and cause investment activity to slow.”
Capital investment was up by 20% through September yoy
